As we reflect on the past year, it’s clear that it was anything but ordinary for the rural property market. From sweeping tax reforms to shifting buyer behaviours, farm sales have faced a turbulent yet transformative period. But with change comes opportunity and preparation is key.
A year of reform and resilience
The Autumn Budget of 2024 introduced significant changes that sent ripples through the farming community. Most notably, the capping of 100% Agricultural Property Relief and Business Property Relief at £1 million has reshaped succession planning and long-term investment strategies. Coupled with rising Capital Gains Tax and employment costs, many farming families were prompted to reassess their financial positions. Some chose to sell, restructure, or retire earlier than planned. Others adopted a cautious “wait and see” approach, delaying sales until 2026 in the hope of greater clarity. Despite these headwinds, the market showed remarkable resilience.
Record supply, mixed outcomes
2024 saw over 187,000 acres of farmland marketed across Great Britain – the highest since 2018 and a 19% increase on the previous year. However, this surge was front-loaded, with nearly two-thirds of acreage launched in the first half of the year as sellers raced to beat anticipated tax changes.
The result? A market of contrasts. Prime farms in desirable locations attracted strong competition and exceeded guide prices. Meanwhile, good-quality farms in less popular areas took longer to sell.
Land values remained historically strong, though softened slightly. Arable land averaged £11,100 per acre in 2024, dipping to £10,400 in early 2025. Pasture land followed a similar trend. But averages only tell part of the story – some parcels fetched £17,000 per acre, while others struggled at £7,000. Location, timing, and buyer motivation have never been more important.
Changing buyer profiles
Farmers remain the dominant buyers, especially those with rollover funds. But we’ve seen increased interest from institutional and environmental investors, seeking land for biodiversity, carbon offsetting, and long-term strategic value.
Lifestyle buyers, once a driving force, have become more selective amid political and economic uncertainty. Looking ahead, confidence will be key. With squeezed margins, volatile weather, and the reduction of direct payments, the next Budget could be pivotal.
Preparing for a farm sale: practical tips for a smooth process
Selling a farm is more than a transaction, it’s often the end of a chapter filled with hard work, legacy, and emotion. Whether you’re planning a sale now or in the future, early preparation can make all the difference.
Here are some practical legal and logistical tips to help:
- Get your solicitor involved early Even before marketing begins, ask your solicitor to review the title deeds. While most land is registered, issues can still arise. Early legal review helps avoid delays later.
- Gather key documents Buyers will want details on planning permissions, building regulations, agricultural ties, wayleave agreements, drainage, water supplies, and environmental schemes. Having these ready saves time and acts as a checklist for your own preparation.
- Consider ordering searches Some local authorities and utilities (e.g. Wessex Water) are taking weeks to return search results. Ordering them yourself and arranging reimbursement from the buyer can speed things up.
- Think about development potential If your farm has development prospects, consider a clawback covenant (overage). Agree terms early – duration, triggers, and percentage rather than leaving it until contracts are drafted.
- Plan for retained land If you’re keeping part of the property, ensure rights of way and access to services are built into the sale documents.
- Review occupier agreements If someone lives or works on the farm, formalise arrangements or begin the process to secure vacant possession.
- Address employee matters Will employment end or transfer to the buyer? Employment law can be complex – specialist advice is essential.
- Get ahead on tax planning A farm sale can trigger Capital Gains Tax, VAT, and impact inheritance planning. Involve your accountant or tax adviser early to structure the sale efficiently.
- Speak to Your Lender If you’re selling part of the farm and not repaying all debt, you’ll need your lender’s agreement to release the property from their security.
Final thoughts
The last year tested the resilience of our sector but it also highlighted its strength and adaptability. As we look to 2026, preparation and proactive advice will be more important than ever. If you’re considering a farm sale or advising someone who is please don’t hesitate to get in touch with me or a member of our agricultural property team at Clarke Willmott. We’re here to help you navigate the journey with confidence.
For more information about this article and our agricultural legal services generally, please contact us online or call 0345 209 1000
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